What Is Forex? Definition and explanation of the following

Contents

Web.fonetekno.com – Forex is a term that’s often heard for those who have an interest in the stock world. More and more people who are interested to do both because the term is often heard in a variety of media.

For novice players in the world of stock, the term is certainly very interesting. Understanding forex that need to be understood properly so that You can invest through one of the products of this investment.

Forex Trading the last few years a lot of requests, especially beginners in the stock world. Every day many are beginning to try to steer the forex.

Make sure to dig out the most basic information in advance before the start. If necessary, ask the traders who are experienced and understand the terms of business.

Understanding Forex

Forex stands for Foreign exchange. This is a form of exchange transactions foreign currency. Usually more commonly called the foreign exchange or forex. The exchange of foreign currency due to the need of the foreign currency itself.

For example You want to get out of the country, shopping in other countries, and such.
There is also the exchange of foreign currencies to be traded. People that trade forex this is called the perpetrators of forex trading. To do forex trading need to experience and understand the diverse factors that exert an influence on the rise and fall of currency in the world.

Baca juga :

It is included in investing activities for the future. It requires capital, but not too big. If there is indeed a fund is the bigger of the better to invest through forex.

How To Work Forex

Many people put rate forex depends only on the prediction. Whereas in forex there is the way it works, not only of the Predictions there is a calculation and also analysis.

There is a way to do forex trading and not everyone can do it right. For those who have long on this earth and have a lot of experience will know how to work untukex what.

Traders or participants of trading forex is usually managing and running the transaction itself or You can also use service broker is credible. Broker here not only as an intermediary but as a provider of trading facility forex.

All the questions is a security system, a means for the transaction, up to a separate account, the Broker also provides help information on the merchant in order to analyze the market.

Baca Juga ;

Then, in the forex does not have a center or reference value for the currency. This means there is not any party which can move the market price if it does not have the funds or the capital of which is quite large. Transactions on the forex trading happens due to the presence of foreign currency fluctuations caused by various factors. The factors stated as the chaos of the world economy until the geopolitical conditions.

Advantages Of Forex

Quoted from duwitmu.com the value of the transaction shares of NYSE, Nasdaq and Tokyo if the number are combined into a $ 300 billion per day. Compared with forex per day could reach US$ 6.6 trillion (according to the Bank of international settlements). This value shows the many folds in the above stock transactions.

Reasons To Choose Forex

1. The Progress Of Globalization

The development of globalization that is supported with advanced technology to facilitate international trade transactions around the world. Globalization encourages the occurrence of global trade.

2. Very Liquid

So-called high volatility as the value of the transaction in forex market is debated quite large. Generally in the stock market, there are several parties involved in the trade. Included :

Government. The foreign exchange to pay debts, receive loans, and other needs.
Company. Generally, export and import by the company require the exchange of foreign currency in their trading activity.
Investors. Buy forex is intended as a form of investment for a big profit.
A liquid market many investors unusual interest because they can buy the currency with ease.

3. Be Rich.

If You want to get profit quickly, in addition to the stock market can certainly try the forex market. Why? The first is the effect in which You can handle in large quantities with little capital. Second, the high volatility in the market forex, You get the chance to Score a lot of advantages. But remember, high risk of back yes.

4. A lot of Time to Trade

In the stock market is usually restricted from 9 am to 4 pm. Saturday and Sunday holiday. Well, in the forex market superiority trade is open 24 hours you know and don’t know a holiday. Interesting isn’t it?

5. Position Trading

In the stock market, the first thing you should do is put up a buy position, then both of you can put up a sell position. The point is you can’t sell the stock if don’t have stock. Different with forex, you can put the position of the buy and sell simultaneously without having to have the goods first, such as stock. The position of buy and sell in forex, this can certainly give you a greater advantage.

6. Just Need A Little Capital

The capital to get into the forex world can be said of small or relatively affordable, but it has the purchasing power of a great investment. For example, You only need $25 to perform a forex transaction is valued at $ 1000.

Forex vs Stock

Parties to the transaction
In the stock market, the transaction happens on a stock exchange Centre between you, the broker and the stock exchange. In forex, the transactions over the counter (OTC) between You and the broker. In a stock market transaction occurs in one exchange, forex no party to the exchange. This makes the role of the broker becomes the very Center.
The position of the stock and Forex

In stock, stock kept in custody. Stock prove the ownership of the company. So You could say that there are items that you have.

Post Views: 325